Options For Financing Property Overseas

5 Best Options For Financing Property Overseas

Five Options For Financing Abroad
Plus: A Great Visa Trick… Which Won’t Work

You have probably heard all the virtues of living and investing overseas many times. And, indeed, there’s an overwhelming case in favor of it.

But there’s a huge gap when comparing buying property abroad with buying property back home: financing. Without the ability to finance, our options for buying abroad are limited. And most people believe financing in a foreign country is out of the question.

But, in fact, you can finance abroad. Today I’m going to discuss five options that may be available to you when buying overseas.

You won’t find all of these options available in every situation, but they’re all worth considering. Let’s take a look at each financing option in turn.

Bank Financing

This one is hardest to find worldwide, but it’s often the best option where it’s available. Here are four things to keep in mind:

  • Generally speaking, loan-to-value ratios will be lower than you’re used to. The best I’ve seen personally is 75% of value, and the lowest was 50%.
  • Terms will be shorter, with 30-year loans fairly unheard of.

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Making Money Buying Property Overseas

The 6 Rules For Making Money Buying Property Abroad

Six Things You Must Know to Make Money Buying Property Abroad
Plus: “How About The Risks Involved With That 17% Return?”

You don’t make money when you sell a piece of real estate, but when you buy it. Before making any property purchase anywhere, you want to feel comfortable about the basic fundamentals. First, that you’re getting a good value…

Second, that you’re buying into a market where you expect values to increase over time…

Third, that you have a clear idea of your exit strategy.

Beyond these three basic fundamentals, here are six important items that I always consider.

Balance Your Location Against The Cost

You know that location is important when making a property purchase. However, you want to balance location against cost. Buying the most expensive piece of property in a great area can put you at a disadvantage when it comes time to sell. You’ll be competing with lower-priced competition. I recommend instead that you look for properties that are priced below the median for the area where you’re investing. That should help support value appreciation while also helping you to appeal to a broader market when it comes time to resell.

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Searching for property, buying property, and renting property

Searching, Buying, And Renting Property Abroad In 2016

Four Steps To Kick Off Your 2016 Property Search

Plus: Crime In Mazatlán… And Where To Settle In Brazil

I’ve been here in Mazatlán looking at houses and condos since mid-December. And as usual, I’m struggling to find the perfect property.

I have two problems that continue to slow me down when looking at real estate abroad.

Counterintuitively, it’s actually harder to pick a property when you have absolutely no restrictions on where and what you might buy… and you have the whole world to choose from. When moving to a new employment location during your work life, the country, state, and often the city are already determined. Your selection of neighborhood is based on convenience for living and commuting, rather than any expectation of fun, adventure, or profit. When buying a second home or investment property abroad, the options are virtually infinite, which makes choosing much harder.

Also, the more experience I have the harder it is to choose a property. This is because all that experience gives me more to analyze, which means I can find fault… or opportunity… with almost anything. I’ll end up with a great property, but it’s not fast.

So I thought I’d drop back and reconsider the basics. It’s a good way to kick off 2016, and it will also help to recalibrate my current efforts.

Here’s the thought process I use to get started on an overseas purchase:

Step One: Honestly Examine Your Underlying Reasons For Buying Abroad

The most important step in the entire process takes place before you even know what country you’re focused on; you’ve got to really think about why you’re buying and Continue reading

Here we cover the four best bargain real estate markets, including: Mexico, Colombia, Chile, and Brazil.

Best Bargain Real Estate Markets

Plus: Is It Worth The Hassle To Buy Abroad With An IRA?

Nov. 24, 2015
Medellin, Colombia

1 U.S. dollar equals:

  • 3.77 Brazilian reals
  • 3,040 Colombian pesos
  • 16.73 Mexican pesos
  • 701 Chilean pesos

Dear Overseas Property Alert Reader,

Over the past few months, you’ve heard a lot about the amazing bargains that the strong dollar has created in some of the world’s top markets.

And during this time, I’ve received a number of emails from people who are trying to sort through the facts related to some of these markets in an effort to focus on one or two of them.

Reviewing data is one thing. But there are other factors that go into making a country a good buy as a second home, an investment, or a place to retire.

So today, we’re going to let the top most-heavily-discounted markets go head-to-head, pointing out some advantages Continue reading

Buying Property Abroad While Strong Dollar Deals Last

Plus: A sample portfolio for buying abroad with your IRA

I retired when I was 49. I did it by seizing a “second-chance opportunity” much like one that I see playing out today.

In 1991, my employer offered an amazingly generous early retirement plan. In order to incentivize people to retire, they added five years onto your age, five years onto your employment time, lifelong health insurance, and large, lump-sum cash incentives.

It was the deal of a lifetime… but I had to miss out. I was too young to be eligible, even with those added years.

As time went by, those early-retirement offers got weaker and weaker, until they were almost no incentive at all. By the year 2000, they were only slightly better than being canned.

But then something amazing happened in 2001. We merged with a competitor and created a company with over 29,000 employees.

Unexpectedly, the clock was wound back to 1991. Once again the company offered add-ons for age and employment, offered the lifetime health, drug, and dental insurance, and tacked on an extra year’s salary on top of everything.

It was a once-in-a-lifetime reprieve… one that I never thought I’d see. I signed up, and retired… there’s no way I was going to press my luck and let this pass by.

And sure enough, after that opportunity, the offers once again got weaker and weaker. Today, they don’t even offer a fixed pension anymore.

That 2001 retirement package was my one, single opportunity, and Continue reading